ZTE has boosted earnings 48% thanks to the heavy spending on network rollouts by Chinese operators.
Sales of networking gear in ZTE’s home market last year rose 74% as 3G rollouts by domestic carriers reached their peak. By contrast, global revenue grew just 11%, which ZTE attributed to the financial crisis.
ZTE last week removed its president, Yin Yimin, and replaced him with global sales chief Shi Lirong, reportedly because of poor offshore performance.
ZTE, China’s second largest telecom vendor, announced a profit of $360 million on 36% higher sales of $8.82 billion, of which domestic sales were $4.45 billion.
Credit Suisse said the result was “broadly in line with our expectations.”
Chairman Hou Weigui said ZTE had become China’s largest supplier of 3G network equipment last year.
He said revenue from Europe and America was growing fast as a proportion of the company’s international sales, and pointed to “breakthroughs” with customers such as CSL, KPN and Telenor.